A rebounding economy could signal a boost for AvalonBay Communities (AVB.N), a real estate company, Barron's said.

The weekly newspaper said AvalonBay, which is trading for $56.56 a share, is about 61 percent below its peak, but could rally to above $61 a share in the next year as the economy improves, Barron's said in its July 27 edition.

The article noted that AvalonBay is exposed to some of the most troubled real estate markets in the United States, including New York and California. But Barron's said AvalonBay's share prices do not reflect a potential turn in the rental markets, which could come in 2011. (Reporting by Steve Eder)